Fiat Chrysler is lucky to be selling pickup trucks and SUVs

Automakers reported
May US sales on Wednesday, and almost every one posted a drop
from the same month a year ago.

In fact, the only member of the Detroit Big Three to post a gain
was Fiat Chrysler Automobiles, which logged an increase of 1%.

At GM, sales dropped 18%, and at Ford they slipped 6%. The
steepness of GM's drop is partly explained by the pullback in
so-called fleet sales to rental agencies and companies.
It's focusing instead on more profitable retail sales.

But FCA's outperformance comes down to one fairly simple thing:
People are still buying pickup trucks and SUVs, two segments in
which the carmaker is strong. Thanks to cheap gas, easy
credit, and pent-up demand, these vehicles are continuing to
sell even as passenger-car sales weaken.

In fact, FCA CEO Sergio Marchionne has opined this year that a
permanent structural shift is underway in the US, and that SUVs
are in the process of displacing cars as Americans' vehicles of
choice.

But the flip side of this is that if
FCA weren't selling trucks and SUVs — and if
it didn't have the Jeep brand — then it would be in a bad
position.

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This is why Marchionne isn't sitting on his hands but is actively
trying to get FCA partnered or merged with another automaker
ahead of an inevitable cyclical downturn.

But FCA was able to maintain sales momentum in May, which had two
fewer selling days than a year ago.

The loss of selling days clearly hurt other automakers.

"With new-car demand stabilizing in recent months, we're
left with a market that is far more dependent on sales days
within a given month," said Kelley Blue Book senior analyst Karl
Brauer in a statement.

"Months with as many or more sales days versus last year
will likely see the same or slightly higher volume in 2016," he
added. "Given the record numbers we experienced in 2015, and the
continued projection for 17-plus million sales this year, the
industry remains in a very good place."

FCA shares traded down 2% on Wednesday to $7. Ford and GM
dropped by closer to 3%.